4.7.2.7 Substantial User Restriction

4.7.2.7 Substantial User Restriction

Any private activity bond (other than a qualified 501(c)(3) bond) will cease to be a qualified private activity bond and will lose its tax exempt status during any period in which the bond is owned by a “substantial user” of the financed facility or by a “related person” of such substantial user. A substantial user includes an owner or lessee of the financed facility.